Ryanair announced a mega-order for 300 Boeing 737 MAX 10 aircraft, initially 150 firm and 150 options, in a deal worth USD 40 billion at list prices.
The company clarified that, given the size of the transaction, it is subject to the approval of its shareholders during the next annual general meeting scheduled for September 14.
Ryanair’s Boeing 737 MAX 10s will have 228 seats and will begin to join its fleet between 2027 and 2033, with the firm orders replacing older Boeing 737NGs. This will result in the creation of over 10,000 new jobs for pilots, passenger cabin crew, and technicians.
The ultra low-cost airline estimates that the number of passengers carried per year will increase from 168 million in the year ended March 2023, to 300 million by 2034. The 737 MAX 10s will help not only to increase capacity but also to further improve its unit costs.
Finally, Ryanair detailed that considering the two-year gap between the delivery of the last Boeing 737-8200 (high-density version of the MAX 8) and the entry of the first MAX 10, the necessary investment will be funded “substantially” by internal cash flow, although they “will remain opportunistic in its fleet financing strategy”.
“In addition to delivering significant revenue and traffic growth across Europe, we expect these new, larger, more efficient, greener, aircraft to drive further unit cost savings, which will be passed on to passengers in lower air fares. The extra seats, lower fuel burn and more competitive aircraft pricing supported by our strong balance sheet, will widen the cost gap between Ryanair and competitor EU airlines for many years to come, making the Boeing MAX-10 the ideal growth aircraft order for Ryanair, our passengers, our people and our shareholders,” said Ryanair Group CEO, Michael O’Leary.
“The Boeing-Ryanair partnership is one of the most productive in commercial aviation history, enabling both companies to succeed and expand affordable travel to hundreds of millions of people. Nearly a quarter century after our companies signed our first direct airplane purchase, this landmark deal will further strengthen our partnership. We are committed to delivering for Ryanair and helping the airline group achieve its goals,” added Boeing President and CEO Dave Calhoun.
